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Espirit to overhaul company’s operations

Esprit’s new CEO Anders Kristiansen plans to overhaul the clothing company from red over three years with job cuts and store closures. He is embarking on yet another restructuring in an attempt to restore the global retailer to its former glory.

Kristiansen wants to close stores, streamline the administration and simplify the product ranges. The restructuring will take two to three years and cost around 1.5 to 1.7 billion Hongkong dollars, or €168 million to €190 million.

Kristiansen plans to boost sales of basic garments like sweatshirts, jeans and T-shirts to make Esprit less dependent on fashion trends. In addition, the product range will be reduced by 20 to 30 percent by next June to cut design and production costs.

Esprit, like its peers Gerry Weber, Tom Tailor and Hugo Boss, has been expanding its retail network in recent years. Kristiansen wants to shut unprofitable stores but that can’t be done overnight because the company is locked into rental contracts.

 

 
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